Tuppen's view on turmoil
One upside for incoming pub lessees of current market conditions is a drop in premiums being paid. Enterprise boss Ted Tuppen describes himself as an "outrider" on the issue. There's a correlation between business failure and incoming licensees' over-paying on premiums, he says. "It's not at all uncommon that a good licensee is failing because he has paid a premium in the first instance. Too many licensees overpay in the enthusiasm of the moment." When, though, will the worst be over economically? When can licensees expect a return to more benign trading circumstances? Tuppen says: "It's very hard to say — there's such turmoil at the moment."
It's buy, buy, sell for Enterprise
One trend worth mentioning from the Enterprise Inns results — the company has moved rapidly from a net buyer of pubs to a net seller. Last November, boss Ted Tuppen promised "at least 100 pubs" would be bought in the coming year. The company more than doubled single-site buys to 108 in the year to September 2007. Tuppen told analysts last November Enterprise had already bought 19 for £17m since September, had six more at exchange stage and 33 pubs with solicitors — that's 58 pubs lined up three or so months into the 2007-2008 financial year. In the event, the brakes went on and the figures stayed at 58. Now acquisitions will be "selective" and the company is "refocused" on selling bottom-end pubs. No numbers were given but City Diary's best guess is that way more than 100 will be sold. Cash, for those that have been snoozing for the past year, is king.
Prognosis: good — for some
Enterprise Inns boss Ted Tuppen is a straight talker, of that there's no doubt. He describes those pubs receiving special help in the second half of his financial year — 1,300 pubs receiving help worth £4,000 each on average — as being in "intensive care". Tuppen acknowledges it's a "morbid analogy" because, by definition, most pubs, like hospital patients in intensive care, "get better, but some die".
Brighton Pub du Vin is imminent
All eyes on Brighton for the opening of the first Pub du Vin in the city next month. The move follows the purchase of the Sussex Arts Club, the adjoining building to Hotel du Vin in Brighton." It's on course to open at the start of November," a spokesman tells City Diary. It aims to create "a very British-style pub with a large selection of fine ales and vast selection of wines". The pub will seat 50 people and will have very traditional pub fare using only the best local ingredients.
Swift move for Dusanj brothers
When exactly did the Dusanj brothers decide the game was up at Cains? No evidence of jumping the gun with a new company, DRC Company. It stands for Dusanj Robert Cain and its two directors are the brothers' wives, Balginder and Nirmal. It was incorporated on 19 August this year, a full six days after administrator PricewaterhouseCoopers sent out the information memorandum offering the company's assets.
If you feel like dancing… tough
An interesting legal spat between nightclub companies Luminar and Mama Group. Luminar sold Mama its Picture House venue in Edinburgh for £3.5m in March. But there was a covenant preventing its use as a nightclub on specific key nights to minimise competition for its own venue, Lava & Ignite. A spokesman for Luminar, which also owns the Jam House in Edinburgh, told the local newspaper: "They signed a restricted covenant that said that the venue would not be used as a nightclub or disco. But it has since been promoted as a nightclub and disco on its website." An interdict meant that the first club night at the Picture House saw it open — but with the dance floor cordoned off.
Marching orders at March
There's been a super-fast parting of the ways at one newly-opened Barracuda managed venue, the Olde Griffin Hotel in March, Cambridgeshire. The new manager John Mannix lasted just two weeks before he was stood down. Mannix — who is declining to give details about the way he left because of legal technicalities — said he has been hurt by claims that he upset customers and local licensees while at the Griffin. "I have tried to put myself out for local people," he told the local rag. "I met some lovely people in the town. I don't want to appear a mouthy Londoner, that is not my style." A spokesman from Barracuda also told the local newspaper: "Mr Mannix is no longer employed by the Barracuda Group. He left on 15 September."
Cash conversion works for M&B
Mitchells & Butlers' Pub & Carvery brand has been picking up unwanted sites from other brand segments — and working wonders.
A truly enormous challenge faced the value brand, though, when segment boss Steve Cash was asked to convert the Lakeview in Windermere, a horrible site that Whitbread had often tried to sell. How's it going? "Extemely well,' chief Tim Clarke tells City Diary.
Slug shunned by Brighton council
Robert Tchenguiz's Bay Restaurant Group applied to open a Slug & Lettuce in the centre of Brighton. The plan drew opposition from the police among others, and Brighton City Council turned the plan down, citing its Cumulative Impact Zone and the failure to produce enough evidence that there wouldn't be vertical drinking. It's good news for local operators who could do without the extra competition, some of whom may even have lobbied for this.